NCR Fights for ‘Blockbuster Express’ Domain Name

NCR Corp. has filed a motion with the bankruptcy court overseeing the Chapter 11 dissolution of Blockbuster Inc., claiming it has a legal right to Internet domain name www.blockbusterexpress.com, a right it said should not be included (“non-executory”) in separate litigation regarding a license with Blockbuster to operate 10,000 Blockbuster Express rental kiosks.

On March 2, 2009, NCR and Blockbuster signed a license agreement regarding the domain right to the Blockbuster name for a nascent kiosk business venture. After Dish acquired Blockbuster stores and related brand rights from bankrupt Blockbuster Inc., it has sought to terminate the (“executory”) license agreement with NCR Corp.

In bankruptcy law an executory contract is a contract in which continuing obligations exist on both sides of the contract. In this context a trustee may assume or reject any executory contract or unexpired lease subject to court approval.

“As of the petition date in these Chapter 11 cases, the domain assignment was not an executory contract and, hence, cannot be assumed or rejected under the bankruptcy code,” NCR wrote in the motion.